Arbitration and Mediation Center http arbiter wipo int

Arbitration and Mediation Center http: //arbiter. wipo. int Resolving Intellectual Property and Technology Disputes through Arbitration and Mediation Eun-Joo MIN Arbitration and Mediation Center World Intellectual Property Organization (WIPO) Geneva, Switzerland 1

Arbitration and Mediation Center http: //arbiter. wipo. int Trends in IP ADR (1) • Internationalization of creation and use of IP rights & globalization of markets; need for cross-border solutions for disputes – Accommodate different languages, cultures, (geographically limited) laws – Avoid litigation in several jurisdiction – Avoid home-court advantage • Growth of complex long-term relationships; strategic alliances; need to co-exist – Licensing, cross-licensing, patent pooling – Need for mechanisms that preserve relations 2

Arbitration and Mediation Center http: //arbiter. wipo. int Trends in IP ADR (2) • Increasingly technical and specialized nature of IP – need for specific expertise of “neutral” • Growth of IP/technology contracts • Closely guarded relationships: confidentiality • Highly competitive areas; Short product and market cycles – Need for time-efficient procedures • Increasing cost of multi-front litigation • Dispute resolution as business decision Alternative to ADR? Routine IP litigation on a multi-country front 3

Arbitration and Mediation Center http: //arbiter. wipo. int Arbitration and Mediation (1) • Party control / autonomy / consensual • Flexibility : “à la carte” • Expertise – Party selection of neutrals; tailored appointment • Neutral – Arbitrator/mediator, language, law, venue • Confidential – Existence, disclosures, result (WIPO Arb Rules Arts. 52, 73 -76) • Less adversarial than court litigation – Restore a working business relationship 4

Arbitration and Mediation Center http: //arbiter. wipo. int Arbitration and Mediation (2) • Single Procedure – Multi-jurisdictional disputes in one proceeding – No jurisdictional problems – Time & cost effective (WIPO Arb Rules, Art 38) • Arbitration: finality / enforceability of awards – New York Convention v with limited exceptions (e. g. denial of due process), “automatic” enforcement of arbitral awards v 137 signatories – inter-partes effect • Mediation: commercial solutions 5

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration and Mediation Center • Time & cost efficient resolution of IP and technology disputes, between private parties, away from court • Established in 1994 as part of international bureau of WIPO • Procedures – Mediation – (Expedited) Arbitration – Mediation followed, in the absence of a settlement, by arbitration – Expert Determination – Domain Name Dispute Resolution 6

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration and Mediation Options 7

Arbitration and Mediation Center http: //arbiter. wipo. int Recommended WIPO Mediation Clause “Any dispute (…) shall be submitted to mediation in accordance with WIPO Mediation Rules. The place of mediation shall be […]. The language to be used in the mediation shall be […]. ” Recommended WIPO Arbitration Clause “Any dispute, (…) shall be referred to and finally determined by arbitration in accordance with the WIPO Arbitration Rules. The arbitral tribunal shall consist of [three arbitrators][a sole arbitrator]. The place of arbitration shall be […]. The language to be used in the arbitral proceedings shall be […]. The dispute, controversy or claim shall be decided in accordance with the law of […]. ” 8

Arbitration and Mediation Center http: //arbiter. wipo. int/arbitration/contract-clauses/clauses. html 9

Arbitration and Mediation Center http: //arbiter. wipo. int Mediation Process Commencement Appointment of Mediator ÞRequest for Mediation (Art 3 -5); Fees Art 21) ÞRole of the mediator (Art 13); Appointment (Art 6 -7) ÞConduct of the mediation (Art 9 -12) Initial Conference Meetings Conclusion ÞSet up the first meeting; Agree on preliminary exchange of document, if any ÞAgree on ground rules of the process; Gather information and identify issues; Explore the interests of the parties; Develop options for settlement; Evaluate options Þ 80% success; costs USD 6, 000 -60, 000; 10 duration 1 -7 months

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Mediation Example 1 • Patent infringement dispute – R&D company holding patents disclosed patented invention to manufacturer during consulting contract – No transfer or license of patent rights – Manufacturer started selling products which R&D company alleged included patented invention – Negotiation patent license failed – Parallel infringement proceedings in several jurisdictions? • Parties submitted to WIPO Mediation – Agreed license and new consulting contracts 11

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Mediation Example 2 • US software provider licensed software applications to European telecom provider: – 10 named users – WIPO Mediation followed by WIPO Expedited Arbitration – Place mediation: Paris; Applicable law: English • Request for Mediation: – Alleged breach of license: more than 50 users – Outstanding fees: USD 10 million – European telecom asked to provide list of unauthorized users – No settlement, but issues narrowed down – Total duration: 2 months, mediator’s fees: USD 13, 000 12

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration • Party autonomy • Flexibility • Efficiency • Rules on technical evidence • Confidentiality provisions • Two exchange of pleadings – Request & Answer – Statement of Claim & Defense 13

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration Example 1 [patent] • Exclusive R&D and licensing agreement biotech co. and pharma co. • Alleged delays development and regulatory approval biotech compound • R&D entity terminated agreement started WIPO arbitration proceedings • Arbitrator expert in biotech-pharmaceutical • Two-day hearing • Settlement agreement 14

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration Example 2 [trademark] • US university registers TM for email system in US, Canada, etc. • CN IT manufacturer registers TM for computer products in 16 countries • Opposition proceedings & litigation for 6 years • TM coexistence agreement; WIPO arbitration clause • US university’s TM application in CN refused, requests CN manufacturer’s collaboration • Request for specific performance (proxy registration & license); sole arbitrator • Interim award (specific performance) 15

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration WIPO Expedited Arbitration One exchange of pleadings ; Shorter time limits; Sole arbitrator; Shorter hearings; Fixed arbitrators fees 16

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Expedited Arbitration Example 1 • Insurance – Both parties see urgency and agree on short deadlines – Only one issue in dispute – One-day hearing – Final Award: 5 weeks 17

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Expedited Arbitration Example 2 • Exclusive Patent License – Dispute involving 1 European and 5 US patents – US party rejected Asian party (inventor)’s claim that its products embodies technologies covered by licensed patents and refused to pay royalties – Complex legal and technical issues (infringement, validity, enforceability, contract defense) – Business secrets, models, site visits (protective orders) – 12 procedural orders, 2 preliminary awards – eight-day hearing – Final Award: 15 months 18

Arbitration and Mediation Center http: //arbiter. wipo. int Drafting Arbitration Clauses (1) • Essential elements: – applicable rules, governing law – number of arbitrators – place of arbitration: arbitration-friendly environment; modern arbitration act – language • Use model clauses and modify only as necessary • Combine options, including mediation – High settlement rate • If arbitration, “make it fit” (e. g. expedited) 19

Arbitration and Mediation Center http: //arbiter. wipo. int Drafting Arbitration Clauses (2) • Examples of defective arbitration clauses – “Arbitration in Geneva” – “Any disputes shall be solved by arbitration between the parties; failing that, arbitration in the English language shall be conducted in Houston, according to the Paris Convention, which shall be final and binding upon the parties. ” • Examples of “creative” arbitration clauses – “Disputes relating to patent infringement shall be finally determined in accordance with the WIPO Expedited Arbitration. Contractual disputes [different institution]. ” – “Disputes relating to US patents: US arbitrator. Disputes relating to European patents: EU arbitrator. Each award can be challenged by and finally determined by arbitration in accordance with WIPO Arbitration Rules. The tribunal shall consist of three arbitrators. ” 20

Arbitration and Mediation Center http: //arbiter. wipo. int Mediation followed by Arbitration • Try mediation before arbitration, at least until – lapse of time period – termination • Combining the benefits – arbitration well-prepared 21

Arbitration and Mediation Center http: //arbiter. wipo. int Expert Determination • Accommodate expeditious resolution of disputes between parties, concerning an issue of limited scope (e. g. royalty rate dispute) or clarification of certain technical or scientific issues by a neutral third party • More informal, flexible and expeditious than arbitration • Determination binding (unless parties agree otherwise) • May be combined with other WIPO procedures 22

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration and Mediation Case Experience (1) • 45 mediations • 49 arbitrations • Parties from 16 countries (domestic & international) – France, China, Finland, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Panama, Romania, Switzerland, USA, etc. • Place of Arbitration – France, Germany, the Netherlands, Switzerland, USA • Procedures – English, French, German 23

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration and Mediation Case Experience (2) • Subject matter: – Contractual: Patent licenses, pharmaceutical distribution agreements, R&D, joint ventures, software/IT, copyright collecting societies, trademark coexistence agreements, art marketing, other commercial relationships (construction, finance, employment). – Patent infringement • High success rate – Value in dispute: USD 20, 000 - 600 million 24

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Arbitration and Mediation Cases 25

Arbitration and Mediation Center http: //arbiter. wipo. int/center/caseload. html 26

Arbitration and Mediation Center http: //arbiter. wipo. int Role of the WIPO Center as an Administering Authority (1) • Administered vs. Ad Hoc? – Hard to agree on procedure once dispute arisen; do you know suitable neutrals; which administering institution (do not combine) • Rules with IPR orientation – Mediation, (Expedited) Arbitration, Expert Determination – e. g. WIPO Arb Rules Arts 48 -52: special rules on experiments, site visits, agreed primers and models, trade secrets and confidential information, protective orders, confidentiality advisor • Model contract clauses • List of neutrals (arbitrators, mediators, experts) 27

Arbitration and Mediation Center http: //arbiter. wipo. int Role of the WIPO Center as an Administering Authority (2) • Competitive fees • Efficient and cost-effective case administration – Establishment of the Tribunal, challenges, support in appointment of experts, management of fees and costs • Hearing facilities – Free of charge in Geneva and Singapore • WIPO Electronic Case Facility (ECAF) • International, institutional knowledge, guidance, supervision • Design and operation of procedures for special categories 28 of IP disputes (UDRP)

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Neutrals • Over 1, 000 experts • 70 nationalities • Broad range of ADR, IP, and technical backgrounds • Appointment in WIPO Cases • Referral Service 29

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Schedule of Fees (Arbitration) : Competitive Rates 30

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Electronic Case Facility (ECAF) • Available for arb / med cases under WIPO Rules – Certain exceptions: America’s Cup Jury Procedure • Main features – Web-based electronic docket – Facilitation of party / neutral case management – Easy, Instant, Location-independent, Secure • User Information – http: //arbiter. wipo. int/ecaf/introduction. jsp 31

Arbitration and Mediation Center http: //arbiter. wipo. int ECAF: Log-In 32

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO ECAF Docket • Docket allows submission in most common formats (Word, PDF, JPG, etc. ) • All actors may view and search the Docket (by submitting actor, date, subject title) • Email alerts communicated to all actors when new submission made 33

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO ECAF Case Management è Case Overview • Contact Information • Time Tracking • Finance Overview • Message Board 34

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO ECAF Case Management • Case Overview • Contact Information è Time Tracking • Finance Overview • Message Board Contact 35

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO ECAF Security WIPO ECAF Use Example • Authentication – ECAF username – ECAF password – RSA Secur. ID password – Changing passcode generated by RSA Secur. ID (Valid only for 60 seconds) • Encryption • 1 US Claimant; Respondents in 3 (US and Europe) locations • Claimant represented by 2 NY firms, 1 German firm; Respondents represented by 2 German firms. – Modern SSL (Secure Socket Layer) system • Firewall protection 36

Arbitration and Mediation Center http: //arbiter. wipo. int Domain Name System v. Intellectual Property System • Domain name system – largely privately administered – result in global presence – first come, first serve • Intellectual property system – publicly administered – territorial rights – examination 37

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO First Domain Name Process • Commenced in July 1998 w/ endorsement by WIPO member states • Final report published in April 1999 • Main Recommendations – Best Practices for Registration Authorities – Administrative Procedure Concerning Abusive Domain Name Registrations – Exclusions for Famous and Well-Known Marks – New g. TLDs 38

Arbitration and Mediation Center http: //arbiter. wipo. int Uniform Domain Name Dispute Resolution Policy (UDRP) • • • Approved by ICANN in October 1999 Administrative procedure Limited to abusive registrations Mandatory submission by domain name registrants Remedies – Transfer or Cancellation only – No monetary damages 39

Arbitration and Mediation Center http: //arbiter. wipo. int Applicability of UDRP • Applicable to all g. TLDs (. biz, . com, . info, . net, . org) • Applicable to certain cc. TLDs (. ch, . co, . ec, . fr, . na, . ph, . ve, etc. ) ICANN Registrar Accreditation Agreement Registrar DN Registration Agreement Domain Name Registrant 40

Arbitration and Mediation Center http: //arbiter. wipo. int UDRP Criteria • Conditions for obtaining remedies: 1. Domain name must be identical or confusingly similar to trademark; and 2. Registrant has no rights or legitimate interests in domain name; and 3. Domain name is registered and used in bad faith. • Examples of rights or legitimate interests: – Registrant commonly known by the domain name – Use for bona fide offering of goods or services • Examples of bad faith: – registration for purpose of profit sale to trademark owner – pattern of preventing trademark owners from registration 41

Arbitration and Mediation Center http: //arbiter. wipo. int Sampling of Disputed Domain Names volvoautomobile. com, mazda. com. mx dknymall. com gallerielafayette. com microsoft. li pfizerviagra. com madonna. com morganfreeman. com viagra. com. ve 三共. com 恒生指数. com fortunéo. com autos-yahoo. com, cn-yahoo. com, email-yahoo. com, greetingsyahooo. com, greetingz-yahoo. com, hotels-yahoo. com, jejuyahoo. com, music-yahoo. com, myanmaryahoo. com, news-yahoo. com, photos-yahoo. com, playyahoo. com, t-yahoo. com, wwwyahooshop. net, yaawoo. com, yahaho. com, yahoobooting. net, yahoofinance. net, yahoo-greeting-cards. com, yahoogreetings. net, yahoohouse. com, yahooink. net, yahooselect. com, yahooshopping. net, yahootax. com, yahootravel. net, yaho-screen. com, yahosoft. com, yaho 1004. com, yahwhoo. com, 123 yahoo. com. . . 42

Arbitration and Mediation Center http: //arbiter. wipo. int Why the UDRP? • Global • Directly enforceable decisions • Non-profit fees (USD 1, 500 for 1 -5 domain names) • Fast – within 2 months • Transparent – decisions publicly available 43

Arbitration and Mediation Center http: //arbiter. wipo. int WIPO Domain Name Dispute Resolution 44

Arbitration and Mediation Center http: //arbiter. wipo. int Role of the WIPO Center as a Resource Center • IP ADR guidance • Publications • Workshops, conferences (upcoming events) – WIPO Workshop for Mediators in Intellectual Property Disputes, June 15 -16, 2006 – WIPO Advanced Workshop for Mediators in Intellectual Property Disputes, June 19 -20, 2006 – WIPO Arbitration Workshop, October 17 -18, 2006 – WIPO Advanced Workshop on Domain Name Dispute Resolution, October 19 -20, 2006 45

Arbitration and Mediation Center http: //arbiter. wipo. int Information • http: //arbiter. wipo. int • arbiter. mail@wipo. int • eunjoo. min@wipo. int • Mailing list: http: //arbiter. wipo. int/subscribe 46